The
Importance of Budgeting for a Family

The term "Budget"
has different connotations for different people. For a Nation, a
budget generally refers to a list of all planned expenditure. It
is the blueprint that defines how prices of essential commodities
will increase or decrease, what kind of taxes will be levied and
how the overall funds of the Government will be spent within
the budget period.

However, if we talk
about the budget from a family's point of view, it is something
that is meant to streamline the expenses of every family member
in relation to the overall funds collected by the earning members
of the family. Though the entire process of budgeting can be a little
time consuming and complicated at times, its benefits are long lasting
and many fold. To put it simply, budgeting is an important planning
activity that must be undertaken by all members of the family, together
to make life simpler and spend intelligently.

Who
Needs Budgeting?

Every family
that spends on products and services & earns an income
needs to budget from time to time. Since all members of the
family have their own needs and requirements, it is imperative
for the whole family to be a part of the budgeting exercise.

Why
Budget?

Budgeting
can help you to know exactly what you have and how much of
it you can spend without compromising on your savings. By
budgeting your finances, you can make sure that you have enough
for a rainy day. With a budget in place, you can control the
way you spend money, thereby making it more purposeful and
long lasting.

A number of people
have learnt to budget and realized the importance of it only after
falling into serious money problems. Don't make the same mistake!
It is very easy to spend endlessly without keeping a track of how
much it is that you can actually afford to spend at a particular
point in time. Many of us fall under the misconception that by budgeting
we will have nothing left to spend on our interests and leisure.
This is far from the truth! A realistic budget can show you if you
have just enough to keep your self well protected in a crisis situation
and still manage to spend on leisure, holiday etc.

If you believe in
"Ignorance is Bliss", alter this thought where
your finances are concerned, as this is one situation in which ignorance
can lead to serious problems in the long run.